Woolworths´ website is to feature travel deals in a partnership with PPA group, a member of the Guild of Travel Management Companies.
PPA Group will supply a dynamically packaged white label travel service through the www.woolworths.co.uk/travel site, offering flights, hotels and car hire.
The high street retailer said if the site is successful, it plans to have travel desks in its shops.
"We have 821 locations that we can utilise," said a Woolworths spokesman. "We have some very large stores and we could find space.
"Travel is a booming market and internet technology is allowing us to get into business areas that traditional we haven´t been able to get into at a low price. Five years ago we wouldn´t have been able to do this, but now we can."
Woolworths.co.uk claims 250,000 unique visitors per day.
The travel site will be promoted through online advertising and email marketing to the retailers´ registered subscriber base.
PPA Group commercial director Graham Richardson said: "This is a significant strategic partnership where we are delivering a service to an established retailer that wants to be the best multi-channel retailer on the high street.
"The power of the Woolworth brand will attract new consumers and create greater confidence in the online travel market. The travel service is a natural addition to the Woolworths´ online offering."
PPA Group has been providing travel services and back office technology to the travel trade through its BOSS system for almost 20 years. More recently it has supplied online leisure travel services to clients including Asda and LBC Radio.
Lastminute.com travel director John Bevan said: "It´s great to see that Woolies is realising the opportunities and demand which lie within online travel. We welcome any competition, however we´re not too worried as our target audiences are miles apart.
"As one of the original online travel companies with a proven brand presence in this arena, it´ll be interesting to see whether people will want to buy a holiday from the people they buy their pic n mix from."